Fueling growth for Technology Partners through the commercial marketplace
Jake Zborowski, Senior Director, Commercial Marketplace
Last year at Inspire, we had a big set of announcements on new enhancements to our commercial marketplace. One year later, we have seen exceptional growth in engagement with our partners and our customers. Today, over 4 million unique visitors come to Azure Marketplace and AppSource every month looking to buy certified solutions built on or integrated with Azure, Microsoft 365, Dynamics, or the Power Platform. For over 9000 publishers, the Microsoft commercial marketplace has become a key distribution and sales channel for both cloud software and consulting offers. Partners who publish in the commercial marketplace are benefiting from the growing demand for Microsoft cloud technologies and can put their solutions in front of their target buyer through Microsoft AppSource and Azure Marketplace as well as within the product experiences in Azure, Dynamics 365, and Microsoft 365. Through the commercial marketplace and partner center, partners also engage with Microsoft sales team and can develop relationships with over 90,000 channel partners in the CSP program.
“Through deep collaboration, Azure Marketplace brought not only prospects and buyers, but also the data and analysis we needed to optimize our buyer’s journey and marketing spend. The bottom line – Fortinet’s PAYG revenue on Azure grew by 82 percent over the previous 12 months and we saw an amazing 10X return on our campaign investment. Strong results, strong partnership.”
To support this continued momentum and growth, we’re excited to announce the following capabilities effective July 1st, 2020:
- New benefit for customers with Azure consumption commitments – We are making procurement through our marketplace even easier for our largest customers. Customers who have an Azure consumption commitment can now draw down their consumption commitment by 100% of the price paid for the qualified software purchased in the Azure Marketplace. Our partners benefit by having access to existing budgets customer have set aside to pay for workloads running on Azure. To learn how to make your offers eligible by becoming Azure IP Co-sell qualified please visit here.
- Reduced fee for transactions – We are introducing a reduced flat fee of 10% for all eligible* apps transacted via the commercial marketplace. This is significant savings for our technology partners. This combined with the billing and commerce capabilities of our commercial marketplace means lower cost, increased agility, and more exposure for our partners.
- Channel Incentives for our resellers – To further grow the businesses of technology partners and CSP partners, we are extending rewards for 90K+ CSP partners to resell eligible* IP solutions. Any CSP partner that transacts an IP Co-sell solution using the CSP platform will receive a 10% incentive on the total billed sales of the solution. Additionally, our technology partners can now select specific CSPs they want to enable to sell their solutions, further adding flexibility to expand their channel with select partners.
To learn more about the commercial marketplace and how to get started, check out the new Introduction to the Microsoft commercial marketplace module on Microsoft Learn!
We look forward to seeing you at Microsoft Inspire this week where we have a fantastic line up of sessions and expert presenters. You can find a full list of commercial marketplace sessions here or simply search the schedule for “marketplace.”
*Eligibility for reduced transaction fees and channel incentives: These benefits apply to solutions/offers that are Azure IP Co-sell eligible, those integrating with Microsoft Teams, or those that integrate with at least two Microsoft 365 products (Excel, PowerPoint, Word, Outlook, SharePoint).
[Update Sept 4, 2020: This article has been edited to clarify that policy changes went into effect on July 1st, 2020]
Will Microsoft be extending the Azure marketplace discount for Azure IP Co-Sell Ready (incentivized) solutions for FY22 (July 1) or do all transactions incur the "full" marketplace fee going forward? There is a significant cost different so handy to know before Inspire.
We've updated this article to clarify that the MACC eligibility, reduced transaction fee, and CSP incentive went into effect on July 1st, 2020.
Additional details on the transaction fee can be found here: https://docs.microsoft.com/azure/marketplace/marketplace-commercial-transaction-capabilities-and-considerations#reduced-service-fee